Benchmark indices closed with gains on Wednesday, snapping their two-day losing streak. S&P BSE Sensex managed to end at 48,677 while the 50-stock NSE nifty closed at 14,617. Index heavyweights such as ICICI Bank, HDFC Bank, and Kotak Mahindra Bank gained and pulled Dalal Street higher. Pharma stocks were also among the top gainers after RBI Governor Shaktikanta Das announced a special liquidity facility for the sector. Volatility continued to inch lower throughout the day and on the closing bell, India VIX was just below 22 levels. Broader markets outperformed benchmark indices.
Sensex ended 424 points higher on Wednesday while the Nifty 50 index closed above 14,600. Dalal Street saw pharma stocks surge higher with the Nifty pharma index jumping 4.31% on closing. Sun Pharma was the top Sensex gainer.
Sensex has breached 48,700 ahead of the closing bell while the Nifty 50 index remains above 14,600.
India VIX was now below 22 as D-Street inches towards the closing bell. Nifty was comfortable above 14,600.
Nifty was sitting just above 14,600 with minutes left before the closing bell on Wednesday. The index has failed to breach the said levels convincingly, the entire day.
India VIX, the volatility gauge is down nearly 5% ahead of the closing bell, holding just above 22 levels. The index had surged well past 23 levels yesterday.
The Reserve Bank on Wednesday asked banks and other regulated financial entities not to impose any punitive restriction against customers for failure to update KYC till December end, in view of the second wave of coronavirus cases. The RBI has also decided to extend the scope of video KYC (know-your-customer) or V-CIP (video-based customer identification process) for new categories of customers such as proprietorship firms, authorised signatories and beneficial owners of legal entities.
“For Q4FY21, Adani Enterprises Ltd (AEL)’s consolidated net sales grew flat to Rs13,689cr. During the quarter, consolidated EBITDA stood at ~Rs1,068cr and EBITDA margins (at 7.8%) improved by 308 bps due to lower other expenditures. Consolidated Net Profit for the quarter was Rs234cr, up 284% vs year ago due to strong operating performance. Overall 4QFY21, in-results with expectation,” said Amarjeet Maurya – AVP – Mid Caps, Angel Broking.
On BSE, The Healthcare index was up 2.79%, while on NSE, the Nifty Pharma was up 3.64%. Healthcare and related industry stocks surged on Wednesday after RBI Governor Shaktikanta Das announced measures to boost liquidity for the sector.
Bank Nifty index was up 1.3% on Wednesday, with still an hour left before the closing bell. Kotak Mahindra Bank, AU Small Finance Bank, and IndusInd Bank are some of the top gainers on the index.
“RBI’s measures announced today have largely addressed the need of small borrowers, individuals as well as businesses, and MSMEs who have been amongst the worst affected in the second resurgence of Covid. Besides liquidity measures, easing lending to the above strata by extension of restructuring , boosting medical infrastructure through PSL recognition will help bring relief in the financial ecosystem. We believe small finance banks like Ujjivan, Equitas and MSME lenders such as DCB, City Union to benefit from some of these measures,” said Naveen Kulkarni, Chief Investment Officer, Axis Securities.
India’s second COVID wave may derail a strong recovery in the economy and credit conditions. The country’s rate of daily new infections keeps spiraling upward, accounting for almost half of the world’s cases, overwhelming the Indian health system. S&P Global Ratings believes the possibility the government will impose more local lockdowns may thwart what was looking like a robust rebound in corporate profits, liquidity, funding access, government revenues, and banking system profitability.
~ S&P Global
In an attempt to jumpstart micro, small, and medium enterprises (MSME) in the country reeling under the second wave of the Covid impact, Reserve Bank of India Governor Shaktikanta Das on Wednesday announced multiple relief measures. The support largely centered around easing credit concerns for MSMEs, small businesses, and individuals.
Indian Services PMI for April decreased marginally to 54.0 in April as compared to 54.6 in March despite the second Covid wave. Most people on the street were expecting a bigger drop in the PMI numbers if not a contraction (reading below 50). While this is the slowest reading in the last three months it still points to a solid pace of expansion especially given the second Covid wave. The April manufacturing and services PMI numbers corroborate our view that the economic rebound has been resilient in spite of the second Covid wave and it seems that the restrictions imposed by various states are not having a very large impact on the economy so far. All in all the PMI readings for the month of April have come in as a pleasant surprise. Jyoti Roy – DVP- Equity Strategist, Angel Broking Ltd
Sensex breached 48,700 on Wednesday as stock markets continued to trade with gains. Nifty was above 14,600.
“Global Hospitals, Parel, Mumbai have witnessed the pandemic in the country very closely. I would term this second wave, a Tsunami and this relief from the RBI Governor today is truly a sizeable boost across all stakeholders in the Healthcare sector; Hospitals, Pharmaceuticals, Healthcare equipment manufacturers, Health-tech companies and also directly to the patients. We value this announcement and find it benevolent for the Healthcare sector. We assure to continue as one of the prime player in making country become- ‘ Healthy India’ and I am sure this way, the next decade, is the decade of Healthcare,’ said Dr Vivek Talaulikar, CEO at Global Hospital – Mumbai.
“Indian Services PMI for April decreased marginally to 54.0 in April as compared to 54.6 in March despite the second Covid wave. Most people on the street were expecting a bigger drop in the PMI numbers if not a contraction (reading below 50). While this is the slowest reading in the last three months it still points to a solid pace of expansion especially given the second Covid wave. The April manufacturing and services PMI numbers corroborate our view that the economic rebound has been resilient in spite of the second Covid wave and it seems that the restrictions imposed by various states are not having a very large impact on the economy so far. All in all the PMI readings for the month of April have come in as a pleasant surprise,” said Jyoti Roy – DVP- Equity Strategist, Angel Broking.
Zomato has set the ball rolling for its much-awaited initial public offering (IPO) after it filed the DRHP earlier last week. The food delivery service provider is now a household name in India and one of the many unicorns that the country houses. But, the papers filed with SEBI reveal that till the end of 2020, Zomato has not managed to turn profitable. Although retail investors have been eagerly waiting for the Zomato IPO, the company’s inability to record profits will lead to the retail portion of its issue being capped at not more than 10%, leaving individual investors with only a small piece of the pie.
As per my charts, sugar stocks are breaking out and the trend is looking bullish. We have selected stocks with a minimum market cap of Rs 15 bn as per the closing of 30 April 2021. The stocks which we have included in our equal-weighted index is EID Parry, Balrampur Chini, Triveni Engineering, Renuka Sugar, Bannari Amman Sugar, Dalmia Sugar, and Dhampur Sugar. The index broke out of from a bullish inverted head and shoulder in March 2016 and it then doubled giving around 110% returns in the next 86 weeks. They say history repeats itself in the markets. A similar structure formed in April 2021. The index broke-out, retested, and is now resuming its bullish momentum. I believe sugar stocks are looking positive for another 8-12 months. However, individual stock selection must be done with great care because sugar stocks are quite volatile.”
Reserve Bank of India Governor Shaktikanta Das, in his address today has proposed to provide restructuring options for the borrowers who are finding it difficult to repay loans on time. The new restructuring 2.0 options will be available to individuals and small businesses who had availed the restructuring earlier and even for those who had not availed it earlier.
Nifty Pharma index surged to jump 3.3% on Wednesday after RBI Governor Shaktikanta Das announced a special liquidity window for banks that would help them lend more to the healthcare and related sectors.
“Small borrowers and lenders, health sector institutions and stability of market liquidity were the key focus areas of the RBI’s policy announcements. The RBI announced restructuring 2.0 for small borrowers (individuals & MSMEs) and also announced term liquidity facility of Rs 50,000 cr for lending to emergency health services providers. Term liquidity of Rs 10,000 cr announced for SFB and further SFB’s credit to MFI will be considered at priority sector lending. Govt to purchase Rs 35,000 worth of G-Sec to maintain market liquidity,” said Satish Kumar Research Analyst Choice Broking.
&P Global Ratings today said that Reliance Industries’ deleveraging of its balance sheet is likely to continue. The company’s prudent investment policies, stable operations, and potential for further asset monetization should support the trend. “We cannot rule out further asset monetization by RIL over the next 12 to 24 months. The company is in the process of spinning off its oil-to-chemicals segment into a wholly-owned subsidiary. It has a nonbinding letter of intent to sell a 20% stake in the segment to Saudi Arabian Oil Co. Further monetization is possible in RIL’s telecommunications and retail businesses. Moreover, we expect the company to receive about INR400 billion from a rights issue later this year,” S&P said.
Sensex and Nifty continued to hold firm and trade between in a narrow range on Wednesday. Sensex at this hour is up 240 points while Nifty has gained 75 points.
The Nifty Nifty PSU bank index was up 2.1% on Wednesday morning, continuing its rally after a 5% jump recorded on Tuesday.
Nifty Pharma index jumped on Wednesday as RBI stepped in to make funds available for the healthcare sector. Lupin, Aurobindo Pharma were the top gainers on the index. Sun Pharma and Dr Reddy’s were among top Sensex gainers.
Shares of AU Small Finance Bank, Equitas Small Finance Bank, Suryoday Small Finance Bank, and Ujjivan small finance banks were all trading higher on Wednesday as RBI Governor Shaktikanta Das announced measures for small finance banks.
Banks that will lend to boost the healthcare infrastructure in the country under the on-tap liquidity window, will be able to park additional funds with the RBI at a discount rate, Shaktikanta Das said.
To boost the provision of immediate liquidity for ramping up covid-related healthcare infra in the country, RBI will open an on-tap liquidity window of Rs 50,000 crore with tenor of up to 3 year at the repo rate is being opened up till March of next year. Here, the banks can lend to hospitals, manufacturers of oxygen, vaccines, suppliers, distributors, and others.
The Reserve Bank of India will purchase securities worth Rs 35,000 crore on May 20 under the GSAP, RBI Governor Das said.
Sensex and Nifty continued to trade in a range, even as RBI Governor Shaktikanta Das tried to assure that the central bank remains vigilant of the developing economic challenges.
“We are stuck in a tight range: 14400-14700. If we break 14400, we could slide to 14100 and if we get past 14700 on a closing basis, we could see 15000-15100. Traders need to be patient and cautious as markets tend to get volatile which can result in stops getting triggered,” said Manish Hathiramani, Proprietary Index Trader and Technical Analyst, Deen Dayal Investments.
Shaktikanta Das said that global recovery remains uneven and the outlook remains highly uncertain, clouded with downside risks.
Shaktikanta Das said that India needs to fight the virus again, as it did last year and earlier this year.
RBI Governor Shaktikanta Das today said that India is fighting a ferocious rise in infections and deaths due to coronavirus.
Sensex and Nifty trimmed opening gains but still cruised in the positive territory. Sensex was just below 48,500 mark.
“RBI Governor’s announcements today are likely to influence markets, particularly certain segments like banking. Relief to MSMEs & retail borrowers might positively impact banks that have a higher proportion of such loans. The rally in PSU banks yesterday may be in anticipation of this,” said V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services.
Sensex began trading above 48,500 on Wednesday morning while Nifty 50 was closing in on 14,600. ONGC and Bajaj Finance were the top index gainers. Broader markets were moving in tandem with the benchmark indices.
“Indian Indices are expected to open on a flattish to positive note as per the trends shown on SGX Nifty. Yesterday, due to Yellen’s comment there was a sell-off seen in the US markets and now RBI’s Governor is expected to make an unscheduled speech at 10 AM, so we have to keep a close watch on his comments too. Any major disappointment in his speech may lead to selling in the market. Some stock specific actions can be witnessed in the stocks such as Adani Green, Tata Steel, SRF, Adani Enterprises, Deepak Nitrite, Ceat, Shalby etc. as these company’s Q4 results would be announced today. 14,200 is a crucial support level for Nifty 50,” said Mohit Nigam, Head, PMS, Hem Securities.
Sensex and Nifty were seen surging higher during the pre-open session on Wednesday. Nifty initially attempted to breach 14,700 levels while Sensex moved past 48,500.